Tesla Model 3 vs Model Y: Which One Should You Choose for a Novated Lease?

Are you considering a novated lease to get behind the wheel of a Tesla? If you’re stuck choosing between the Tesla Model 3 and Tesla Model Y, you’re not alone! Both models offer a fantastic electric driving experience, come packed with Tesla’s cutting-edge technology, and boast strong range capabilities. However, selecting the right one depends on your specific needs, from budget and space requirements to personal driving style. Let’s dive into the details to help you make an informed decision between the Tesla Model 3 vs Model Y.

Design and Build Quality: Tesla Model 3 vs. Model Y

When comparing the Tesla Model 3 vs. Model Y, one of the most notable differences is in their design and build quality. The Model 3, a sedan, is more compact and aerodynamic, while the Model Y, an SUV, is taller and more spacious, designed for those needing extra cargo room. 

Both models share Tesla’s minimalist aesthetic, but the Model 3 received recent design upgrades, which include improved panel gaps, acoustic glass on all windows, and higher-quality materials inside. This makes the Model 3 quieter and more refined, while the Model Y retains its slightly rugged utility feel. For drivers comparing aesthetics and luxury elements, the updated Model 3 has a slight edge in build quality and interior refinement.

Interior Space and Passenger Comfort

In terms of interior space, the Tesla Model Y offers greater flexibility and is suited for families or drivers who often carry larger loads. With up to 2,158 litres of cargo space, fold-flat seats, and optional third-row seating, the Model Y accommodates passengers and cargo with ease. The Tesla Model 3, on the other hand, is more compact, with cargo space reaching up to 971 litres, making it a practical choice for urban drivers but slightly less accommodating for large families or extensive luggage. 

Rear-seat passengers in the Model 3 benefit from a new 8.0-inch touchscreen with access to climate controls and entertainment, offering a tech-savvy advantage over the Model Y’s simpler setup. For drivers who prioritise interior control and rear-passenger entertainment, the Model 3’s updated interior offers an advanced experience.

Driving Experience and Performance

Driving dynamics also differ between the Tesla Model 3 and Model Y. Both models provide a smooth and powerful ride, equipped with Tesla’s dual-motor all-wheel drive, but the Model 3’s lower stance gives it a sportier feel on the road. The Model Y offers a higher driving position, which is ideal for visibility but contributes to more road noise and less refined ride quality. 

Recent upgrades to the Model 3’s suspension improve ride comfort by reducing cabin vibrations, enhancing the sedan’s overall handling and quietness. In contrast, the Model Y, while still comfortable, tends to experience more cabin noise and a slightly less responsive drive due to its SUV structure. Drivers seeking a quieter, more performance-oriented ride might lean towards the Model 3, while those prioritising space and elevated visibility might prefer the Model Y.

Key Differences Between the Tesla Model 3 vs Model Y

When choosing between the Tesla Model 3 vs Model Y, consider these main differences:

• Space Needs: The Model Y’s SUV profile provides much more cargo and passenger space, making it a better choice for families or those who need extra room.

• Budget: If you’re working within a stricter budget, the Model 3 offers similar performance and tech features at a lower cost.

• Driving Preferences: The Model 3’s sporty handling is ideal for drivers who love a more responsive driving experience, while the Model Y offers a commanding SUV feel.

Tesla Model 3 vs. Model Y: Price Cuts for 2024 Models in Australia

Tesla has made the 2024 Tesla Model 3 vs  Model Y more affordable than ever, with significant price reductions across several trims. The Model Y Rear-Wheel Drive now starts at $55,900, a $5,000 cut, while the Model 3 Rear-Wheel Drive has dropped by $4,000 to $54,900. This recent reduction positions the Model Y only slightly above the Model 3, making both highly competitive options for Australian EV buyers. Tesla’s third price cut since April 2024 solidifies their goal of making premium EVs more accessible.

Choosing the Right Tesla Model for Your Lifestyle

Tesla Model 3: Best for Solo Drivers or Couples

The Model 3 is a top choice for individuals or couples who don’t need a ton of space but want an efficient, sporty EV with solid range and performance. Its lower price also makes it easier on your novated lease budget, which is an appealing factor for many first-time EV buyers.

Tesla Model Y: Best for Families or Those Who Need More Space

If you regularly carry passengers or need to transport larger items, the Model Y’s spacious cabin and versatile cargo area make it the smarter option. While it may come with a slightly higher monthly payment, the added space and practicality could be well worth the investment.

Conclusion: Tesla Model 3 vs Model Y – Which EV Fits Your Needs?

Choosing between the Tesla Model 3 and Model Y ultimately boils down to your priorities. If you’re after a sleek, budget-friendly sedan with sporty handling, the Model 3 is a fantastic choice. For those who need extra space, cargo capacity, and a higher driving position, the Model Y brings these perks along with a bit more versatility. Either way, a novated lease can make the transition to electric driving more affordable and accessible.

Ready to make the switch? Contact Novated Finance Australia today to find the perfect Tesla for your needs and enjoy a smarter, tax-friendly way to drive.

Frequently Asked Questions

• Is a Tesla Model 3 or Model Y better for a novated lease?

  Both the Tesla Model 3 and Model Y are great options for a novated lease, but the right choice depends on your lifestyle. If you’re looking for a budget-friendly, sporty EV, the Model 3 might suit you best. For more space and family-friendliness, the Model Y is ideal.

• Does the Tesla Model Y offer more space than the Model 3?

  Yes, the Tesla Model Y provides significantly more interior and cargo space compared to the Model 3. This makes it ideal for families or anyone needing extra room for passengers or cargo.

• Is the Tesla Model Y more expensive than the Tesla Model 3?

  Generally, the Model Y is more expensive due to its SUV design and additional space. This could result in a slightly higher novated lease cost, but the added versatility may be worth the extra cost.

• How does a novated lease work with a Tesla Model 3 or Model Y?

  A novated lease lets you use your pre-tax income to pay for the lease, reducing your taxable income. This can make owning a Tesla more affordable while simplifying your car expenses with one monthly payment.

• Which Tesla model is more suitable for long-distance driving?

  Both the Model 3 and Model Y are well-suited for long drives, with impressive ranges. However, the Model 3 is typically more efficient, offering a slightly longer range on a full charge, making it ideal for frequent long-distance drivers.